Property Noise: Well, the election has been and gone, like it or lump it we have a Labour government for the next 3 years with many sweeping changes in the wind. The next change, property wise appears to be the extension of time regarding the bright line test from 2 to 5 years. That’s the tax changes around owning a rental property and the time you must own it before you pay tax on any asset profit. Also, the big change in the wind will be the residency rule for foreign buyers to purchase property in NZ. I believe the countries excluded from this are Australia and Singapore? This change maybe law is due any time now, it will be interesting to see how it will affect now excluded buyers that already own a property here? I presume the thinking behind this is to free up property purchases for New Zealanders and residents unless purchasing a new build? It will be interesting to see if there is a flurry of property purchases prior to this being law. With this and new laws coming into effect for land lords we may see a lot of rental properties coming to the market. I think this may be one scenario, but as always time will tell. If this is the case it should free up some properties for first home buyers and the like, the down side maybe it will put the squeeze on available rentals, of which there is already a shortage? Just my thoughts but as always time will tell. I’m happy to report Harcourts Cooper & Co hit the 40% market share in November so if you are buying or selling let us be your preferred choice of Agency in the new year. So, I’m still positive, alive, awake and enthusiastic and looking forward to 2018
What’s been happening: On a personal note, I have another grandchild on the way courtesy of my daughter. Granddaughter Cora at 19 months is a delight being such a pleasant child, but they certainly keep you busy and all that lifting brings home the fact you’re not that young or fit anymore. Christmas this year was a little strange as it was spent in Orange, NSW Australia with my husband’s brother and sister in law. Great people but I made sure I took my fan and insect repellant and a bug swat. It turned out to be less humid then here and cooler at night to my relief.
Until next time: Thank you for continuing to recommend me to others as their preferred sales consultant to either purchase or sell and I hope you all had a wonderful Christmas and New Year? Keep safe and hopefully this wonderful weather holds for the rest of summer for everyone, although we will be looking for some rain soon. If you would like an up to date appraisal or want to sell or buy please contact me for a chat. These are interesting times, the new RV’s are out not that they are much help and change is our only constant, it would be very boring without it. If you no longer wish to be on my letter list, please let me know but I would be sad to see you go.
Property Noise: Well, it’s election year and true to form everything slows down in sales and the property market is no different. We keep hearing about a drop in prices but I can’t say we have seen it here very much. Turn-over and time on the market has changed though. A few interesting tid bits from our monthly meeting of Cooper and Co which as you know is now a large company with Martin Cooper at the helm. We are still doing well even in this strange year as the market catches its breath. We currently fluctuate between 33% of the market share and higher with our new goal being a 40% share. While the newspapers keep reporting gloom and doom on one hand and then on the other states with the shortage of property and new builds in the Auckland that prices will take off again, so we see it as only an election year glitch. Once this is over and spring is upon us we look forward to a resurgence from buyers and sellers. Upon saying that, I don’t have a crystal ball but that is the feeling of most of us and in fact as there is very little on the market at present and with the cash rate predicted to stay unchanged buyers are still out there, desperate to buy with nothing much around, so if you are thinking of a change, now could be a good time.
So, I’m still positive, alive, awake and enthusiastic.
What’s been happening: On a personal note, I have just got married, I’m not sure at this age that I will get to celebrate 30 years like the last time but I will give it a good go. I have managed to keep clear of that terrible chesty cold everyone seems to have had by going overseas for a short break. Japan was very hot and 3 days was enough, luckily the new step son is fluent in Japanese and could identify all that turned up on our plate. Tokyo was an interesting city, clean and tidy with very polite people. An enjoyable 10 day stop in the UK to visit friends, family and catch up with old work mates with the odd cider and steak and ale pie thrown in. It was very hot and pleasant everywhere we went, then on to Canada to meet the new relative’s and take in all that Vancouver and Victoria had to offer. Very like NZ in many ways but with even bigger trees, very pleasant as was the 25-27 Degrees C that we experienced. 4 weeks and only one day of rain in July for us, unlike the 4 days of dry weather in July you had to endure here. My granddaughter turned 1 while I was away and decided no more crawling for her and is now walking everywhere. She is such a pleasant child but like many children she has experienced those nasty cold bugs 3 times this winter. In fact, as I sat with her in A & E the other night surrounded by sick babies in a small room, the doctor said most kiddies are getting sick every two weeks. Sounds like we have a way to go yet. I’ve now watched “the wheels go round and round” and “incy wincy spider” many times and I’m up to speed on all the nursery rhymes, again!
Until next time: Good luck on deciding the new government, I shall be out there voting on the day. I’m sure we are all looking forward to spring and better weather, so please call me if you would like an up to date appraisal or just a chat. Thank you for continuing to recommend me to others as their preferred sales consultant, and as always, I have enclosed a recipe you may like to try. If you have a recipe you would like to share please send it to me so I can enclose it with my next letter or load it up onto my website. If you no longer wish to be on my letter list please let me know but I would be sad to see you go.
Dear All, time for a catch up
Property Noise: I tried to get an end of year letter away but apart from the usual hustle and bustle of pre-Christmas work up the market went a bit crazy with everyone deciding to list or complete right up until Christmas eve. Well here we are past Easter and heading headlong into Anzac Day (My birthday by the way, so please everyone have the day off) an of course winter is just around the corner. There is an autumnal feel in the air a nice change from those clammy nights. I hope this letter finds you all well and looking forward to the cooler months with the hope of a better and dryer summer when it comes around again.
Real-estate wise it’s a bit different from this time last year. Properties are still selling and receiving good prices but the process is slower with some types of properties have leveled off in price and some not. It feels like the market is just catching its breath, which of course had to happen at some stage. It will be interesting to see what happens as we head into an Election year. We live in an international city where there is still a shortage in housing, where people still want to live and expats and new residents prefer to settle down and find a new home. I recently attended a talk by Tony Alexander the BNZ chief economist. He was very good, factual and calm. His view and my take on what he said is below. I found it fascinating and it just supported my views above. As I said this was only my take on his views. You may wish to check out his website tonyalexander.co.nz
He said there has been underbuilding in Auckland since 2004, fact and they can’t catch up with one of the problems being a shortage of builders and that won’t change. Neither will immigration in the long run. The property market is just pausing at the moment and just because overseas has a sneeze it doesn’t always mean we are going to get a cold. We in New Zealand live in a flexible economy with net migration which wasn’t always been the case. Last year alone there was a net migration of 42,000 with 60% of that coming to Auckland, there will continue to be a draw card for people to live and work here as 46% of jobs come to the Auckland region. Auckland is growing and will continue to do so and prices will rise again. The market is only pausing at the moment, he suggests buy now while the interest rates are still low and can be fixed, don’t wait. There are all these forecasts about how interest rates will significantly rise, however since 2009 interest rate forecasts from economists and analysts have all been wrong. In the long term, he believes the rates will still stay low. Let us not forget 1 million New Zealanders still live overseas, many are thinking of re-trenching, coming home because we have a solid economic underpinning. The Auckland property market will stay well supported because of all these factors, prices will continue to rise in the long run.
In 1998, the percentage of those working over the retirement age was 5.8%. Now those still working is 23.6%. This age group are not leaving the area they live in like they once did, they are staying in the family home as family keep coming home, need to save or wish to live here permanently. If they are moving they are moving sideways to apartments but bigger ones not the small ones in the CBD, apartments have a different audience now. Because the interest rates are low, no longer do those thinking of retirement put their money in term deposits as the return is so low they now decide to put their savings back into property and rents will stay high due to the shortage of homes. This will in turn keep the property prices up.
What’s been happening: We had our first Christmas with my new granddaughter, she is now 9 months old and like her mother did she has decided it’s a good time to think about walking. She loves her solids and it’s funny to watch her face as she tries new things, always guaranteed to give us a laugh. She does loves food and is happy to open her mouth and put anything in it, she would like to try many different foods but it’s hard to get anything past her mum’s eagle eye. My grandson has just turned 5 and like so many other Devonport families his Mum and Dad are looking at living out of area where they have a better chance of owning their own home. This is in direct contrast with young families returning from overseas and still see Devonport and the surrounding areas as the place to settle. I presently have families back from the UK and USA that are eager to buy.
Until next time: Please call me if you are thinking of selling. Tony Alexander supports the theory it’s still a great time to sell and a must time to buy. So, give me a call if you would like an up to date appraisal. Once again thank you to my many clients for return business last year, it is always appreciated as is a referral of my services.